Sebi to restore VWAP expiry-day settlement from December 7
In short
Sebi said that from December 7, derivatives contracts on expiry days will again use the volume-weighted average price from the last 30 minutes of regular trading. The rule is being brought back after traders raised concerns about sharp price swings.
This matters because the change could make expiry-day pricing smoother. The report does not say how much trading volumes will recover.
What the reporting says
Sebi will restore the volume-weighted average price method for expiry-day derivatives settlement from December 7, reversing the earlier change after trader concerns over sharp price swings. The reported rule applies to contracts on expiry days and uses the last 30 minutes of regular trading. The immediate consequence could be steadier settlement pricing, while the impact on trading volumes is still uncertain.
Why it matters
Sebi's decision to restore the VWAP method for expiry-day derivatives settlement from December 7 responds to trader concerns about sharp price swings. The rule affects how contracts are settled on expiry days and may reduce volatility around the close. The reporting does not quantify expected volume recovery or say which market segments will be most affected.